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2015 (8) TMI 1553 - AT - Income TaxExemption u/s 11 - as per revenue receipts of the assessee are commercial in nature - Charitable activity u/s 2(15) proved or not? - whether the Revenue has brought on record any material/evidence which may suggest that the assessee was conducting its affairs on commercial line with the motive to earn profit? - HELD THAT:- On dissolution of the assessee authority, all properties, funds and dues which are vested in or realizable by the authority shall vest in or be realisable by the state government and therefore, the funds generated during so called charitable purpose period may be utilized for the purpose of the business - On page 5 of the assessment order, there is a chart of the income of the assessee from various sources and as per the same, Realisation from allotted properties is only Rs. 480.45 lacs and interest income is of Rs. 458.24 Lacs plus Rs. 232.25 lacs and Other receipts Rs. 665.62 lacs. In this manner, as against Realisation from allotted properties of only Rs. 480.45 lacs, interest income and Other receipts is Rs. 1356.11 Lacs. In view of these facts, the A.O. came to the conclusion that the receipts of the assessee are commercial in nature. Under these facts, in our considered opinion, the judgment of Hon’ble Allahabad High Court rendered in the case of CIT vs. Lucknow Development Authority[2013 (9) TMI 570 - ALLAHABAD HIGH COURT] cannot be made applicable in the facts of the present case. Learned CIT (A) has simply followed this judgment without examining this aspect that the facts in the present case are tallying or not with the facts in the case of CIT vs. Lucknow Development Authority (Supra). Therefore, we feel it proper that this issue should go back to CIT (A) for a fresh decision after examining this aspect that the facts in the present case are tallying with the facts in the case of CIT vs. Lucknow Development Authority (Supra) or not. We, therefore, set aside the order of CIT (A) and restore the entire matter back to him for a fresh decision - Appeal of the revenue is allowed for statistical purposes.
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